I've been looking for an entry into the S&P for quite some time now. Purple box is the .382 and .618 fib retrace. Red lines are areas of confluence between the 50% retrace and support and the 61.8% retrace. I will be scaling into these positions knowing I won't be able to call the bottom and stop loss set at the 1.23 retrace (not 100% in the case of divergence and a double bottom).
Comment:
.382 hit. 1st buy activated with a 1/2 position.
Comment:
50% retrace hit. Testing .382 as resistance.
Comment:
.382 broken. Currently up 4% on most recent buy. Next resistance near $320. Target is now the 1.618 fib. Roughly $370 for a 23% total gain.